US considers creating an oil alliance with the Saudis

21.03.2020 12:37

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The US Department of Energy is persuading the administration of President Donald Trump to form an alliance with Saudi Arabia to regulate world oil prices, which could lead to the secession of the kingdom from OPEC.

The implementation of this idea will help strengthen relations between the United States and Saudi Arabia, as well as prevent further strengthening of Riyadh’s ties with Moscow, according to Washington.

The US Department of Energy is considering several options for implementing this strategy. One of them provides for the expansion of the powers of the US government not in the field of regulation of oil production in the United States (controlled by the private sector), but in terms of more active use of national hydrocarbon reserves. In any case, preparing the soil for an oil alliance with Saudi Arabia will require several months of intense effort.

On the eve it became known that US oil companies were going to reduce hydrocarbon production due to the collapse in prices after the OPEC + participants were unable to come to a consensus on March 6 about the need to further reduce production.